The Ghanaian government has announced its commitment to settling all mature coupons of the Individual Bondholders Forum (IBF) and Individual Bondholders Association of Ghana (IBHAG) on June 30, 2023. A memorandum of understanding was signed between the Ministry of Finance and the IBF and IBHAG on May 16.
To address the issue, the parties have agreed on the following terms:
- The government will complete payment of coupons in arrears as of May 31, 2023, by June 30, 2023.
- The government will promptly pay all coupons that become due from June 1, 2023.
- Maturing bonds will be reprofiled into T-Bills at prevailing interest rates upon maturity.
- The outstanding maturing bonds will be distributed in the proportions of 35% for 91-Day, 35% for 182-Day, and 30% for 364-Day treasury bills.
- The migration of the outstanding maturing bonds into Treasury Bills will follow the current mode of issuance mechanics of government securities, with no distinction between reprofiled Treasury Bills and regular Treasury Bills.
- The government and the CIBG will collaborate to address outstanding issues, meet the immediate cash needs of individuals who did not participate in the DDE program, ensure payment certainty, and contribute to macroeconomic stability and economic recovery.
- The Ministry of Finance will issue an offer memorandum to all individual bondholders who opted out of the DDEP, outlining these terms.
Through this agreement, the government aims to honor its commitments to individual bondholders, provide stability, and foster economic recovery in collaboration with the relevant stakeholders.
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